family moving to mexico: HELP!

[meadowrose]

My family is considering moving to Mexico (either the Rosarito area or the morelia area). We are hoping that we will get a decent for for somewhere in the $100,000 - $150,000 range.
So, here are some of my questions, and I would be incredibly grateful and ecstatic if you could try to answer them for me!


NOTE: Before you read this, I’d like to say that I have done research but I would really really like to hear from actual expats from themselves and not just statistics and charts, but actual personal experience. I hope you understand and I hope these questions aren’t too bothersome.


My husband was born in Mexico, so are me and my teenage daughter able to get citizenship? How does that work?

My teenage daughter is currently home schooled…..should I continue home schooling her? How are the schools there? (I would only send my daughter to private schools, not public.) Are there English speaking schools?

How about jobs? What are the job areas in Mexico that need workers? Would my daughter be able to get a little job? How much does the average person make in a year and how much is minimum wage? (american us dollar form please)

What are the average house costs (in American us dollars form, please) in rosarito and morelia? Is it easy to buy a house? What about farm cost?

How do the taxes differ from american taxes?

What about health care and dental care?

How do you obtain a driving permit?

How does money exchange happen?

What is the average household income & yearly cost of living?(american us dollars form)


Thank you for taking the time to read and/or answer this. If you can’t (or just don’t feel like) answering any of these, could you at least point me in the right direction?

[Bevdeforges]

Hi, and welcome to the forum.

We've got a number of members here living in Mexico, so someone will be along shortly to answer your specific questions. I can take a stab at one or two of them, based on my experience elsewhere...

You say your husband was born in Mexico - does he still have his Mexican nationality? If so, it should be fairly easy for you and your daughter to obtain Mexican nationality, though normally it will be necessary for you to reside in the country for some period of time (a couple of years, most likely). If he has given up his Mexican nationality, he will probably be treated like any other foreigner.

For some of the other information, you may want to check the website of the US Embassy/Consulate in Mexico. The US Consulates often publish a booklet for US nationals living in the country - and it includes some of the information you're looking for.

Also, since you asked about taxes, be aware that you will have to continue to file your US taxes every year, even after you take Mexican nationality. There are agreements in place to avoid double taxation, and a certain amount of "earned income" is excludable for US tax purposes, but you do have to file to claim the exclusion.
Cheers,
Bev

[n44114411]

Hi Meadowrose,
I'm sorry that I am not writing to give you answers to your questions... in fact I was just thinking of posting when I saw your post and .... jeez it sounds almost as if I could have written it myself. I am also married to a Mexican (he's still a citizen of Mexico) and we have a teenage son. Though we were thinking of moving after he graduates from highschool and I will be old enough for early retirement (55) by that time. We are also considering the Rosarito Beach area. I am also thinking about being close enough to the border so that I could commute as I don't think I would be allowed to be employed in Mexico if I want to keep working. I have no idea if that is a realistic goal or a pipe dream at this point and hope somebody will comment.

From what I have seen regarding real estate taxes compared to where I have lived in the states (California, Texas and Oregon), the cost is miniscule.

I recently called the IRS to see about receiving SS payments when we are living in Mexico. I was told that my husband, though not a citizen of the US, could still receive SS as long as he has worked 10 years in the states even though he will no longer be a legal resident of the US. As for me, there is no problem getting SS payments.

I will be watching your thread as it sounds like we have similar goals and interests. Good luck to you and your family.

[sparks]

>>>> We are hoping that we will get a decent for for somewhere in the $100,000 - $150,000 range.

I assume you mean a house. Yes a very nice house, even for less .... but much more likely to find it in the Morelia area. The Tijuana border area and Morelia couldn't be much different so wonder why those are your options. Different in climate, elevation and costs of everything.

Nobody makes much in Mexico but with a paid for house and a modest lifestyle you should do fine. Unless you teach English you'll need to be fluent in Spanish to work in Mexico .... if you can even find a job.

Taxes are low, electricity is high, gas (both) is reasonable, medical care is good and cheap.

>>>> How does money exchange happen?

If you don't know how money is exchanged it sounds like you need to make your first Mexico visit for a few weeks to each area you're interested

[synthia]

You definitely need to visit, for a whole host of reasons. That should be one of your priorities, visiting places you are interested in.

Money exchange, in its simplest form, happens when you stick your ATM card into a machine in Mexico, enter your pin, and get pesos. You will probably be charged a foreign transaction fee by the bank, plus a local ATM fee.

If you plan to transfer a large chunk of money to Mexico, for instance to pay for a house, you should talk to your bank about how to arrange that. There are no limits to how much you can take out of the US, but the bank will have to notify the government and you may have to fill out a form or two. What will probably happen is a wire transfer.

The rate you get for the exchange is a function of the current rate, modified by the means of exchange (cash, credit card, etc.) and the size of the transaction. Most ATM transactions are charged at the rate the bank gets, supposedly, which is the one for millions of dollars and should therefore be a bit lower. However, Visa, Mastercard, and Discover are settling a lawsuit that alleges undisclosed charges and other irregularities. It should be done properly now, since they got caught.

Oh, dear, way more information than you needed.

[MamaCalidad]

My husband was born in Mexico, so are me and my teenage daughter able to get citizenship? How does that work?

If your husband is a Mexican citizen, then your daughter is as well. She just needs proof. Once you settle in Mexico, take her original birth certificate, your husband's original birth certificate (and probably yours too) along with a couple copies of each to the local Registro Civil. There will be one in every town of anything resembling a decent size. They should issue her a Mexican birth certificate.

You can obtain Mexican citizenship after living in Mexico for a certain number of years (5, I think...unless you give birth to another child in Mexico and then I think that it's 2).

My teenage daughter is currently home schooled…..should I continue home schooling her? How are the schools there?

We are homeschooling, so I'm biased, but I think that you should plan on continuing to homeschool. The results that we've seen from the local schools is pretty sad. If you normally depend on the library for much of your curriculum, you may need to figure out something different.

What about health care and dental care?

Different. It's very inexpensive, but things you take for granted like the doctor wearing gloves don't routinely happen. At least not where we are.

How do you obtain a driving permit?

Knowing the right person always helps in Mexico. The head of the office where we were is a family friend. He asked my husband if I knew how to drive and then told the staff to issue the license for the standard fee. I think that they required a copy of my birth certificate and marriage license (because of my married name).

How does money exchange happen?

You can exchange money at any number of exchange houses, banks or I've yet to go anywhere where they weren't happy to take dollars.

[pedro]

in tourist zones they will take dollars and give you rotten exchange rate.
here in chapala i have never seen a merchant,etc. take anything other than mexican p.
a merchant in greatfalls montana will not except mexican money for example-nor those in peoria, iowa.

[MamaCalidad]

Originally Posted by pedro

in tourist zones they will take dollars and give you rotten exchange rate.

Sometimes. And sometimes they'll give you a better rate. We had a store give us an 11.00 exchange rate last week. It's like anything else in life. Let the buyer beware. *shrug*

here in chapala i have never seen a merchant,etc. take anything other than mexican p.

I imagine it's rarer to see. Have you ever asked? Of course, Mexico isn't completely the same everywhere, so perhaps it is different there. We've made purchases with dollars in a number of cities in Tamaulipas, in Monterrey, in Saltillo, and in a number of cities in Guanajuato.

a merchant in greatfalls montana will not except mexican money for example-nor those in peoria, iowa.

Apples and oranges. Mexico's economy is much more influenced by US dollars than the US economy is ever impacted by Mexican pesos. I seriously doubt that there is any bank in the US where you can have your deposits maintained as Mexican pesos. You can have your bank deposits maintained in US dollars in at least one Mexican bank that I know of.

[RVGRINGO]

I think you would find the quality of life more enjoyable in Morelia because of both climate, education and cultural aspects of that beautiful city. You should be able to find nice homes in your price range.

Since your husband is Mexican, you and your child will need to obtain FM2 Visas and then apply for Naturalization after two years. There are fees and income requirements from outside Mexico (investments, bank accounts etc.) or other proof of resources during that time. If your daughter has a different father, you will probably need his permission for a passport and for her to live with you in Mexico.

There are bilingual private schools in many areas. The degree of bilingualism varies. If your daughter already has some Spanish, she will do well to attend one. If not, private tutoring is recommended. If home schooled, she will have a difficult time adjusting and meeting her peers. Mexicans are very welcoming if one has the right attitude.

Minimum wage for unskilled labor is about $5 USD PER DAY. An educated person or one with skills, language and connections, will earn more.

You should use Google to find real estate listings for those areas, but must realize that the use of real estate agencies is rare in Mexico. You'll have to do some legwork and talk to people locally. I'm at Lake Chapala so someone else may be able to help with the housing question.

When you see a price advertised in Mexico, it usually includes the 15% tax. There is income tax on investments and salary.

Health care is excellent and much more pleasant than in the USA. IMSS health insurance is available from the government, as is private insurance.
Prices depend upon age but are very, very reasonable compared to the USA.

Drivers licenses from other countries are honored here. When you need a new one, go to the Motor Vehicle (Trafico) offices in your area and apply. There is a written test in Spanish and a minimal driving test for the first licence is given in a parking lot with cones. The test can be studied online.

Most American expats retain US banking accounts and have income from the US deposited there. It is much simpler than Mexican banks. That way, you can use an ATM card from the US Bank at any ATM machine for cash needs. Most larger cities have offices of MultiValores or Lloyd investment houses for mutual fund accounts, etc. for larger peso amounts you might want to consider for larger purchases or emergencies. It is all very easily done. Mexican banks are difficult to deal with, expensive and credit cards are horribly expensive. This is a cash society.

I have no idea what 'average household income' might be. With the benefits of climate and the availability of so many different lifestyles, the range is great; from poverty to great wealth with a small but growing middle class. Immigration requires an income of about $1100 USD per month per foreigner and cuts that figure in half if one owns a home. That would apply to you and your daughter until you achieved naturalization.

I hope I have most of the details reasonably correct and that they help you.

[pedro]

i suggest,mamacalidad, that you carry on with your vastly superior knowledge in financial matters as they apply in mexico. after all,i've only been coming here since 1978 and only actually lived here for 2 years.
carry on, passing only yanqui $'s everywhere.
the utility companies , municipalities propery taxes and 99% of merchants which are primarily paid in cash will be extactic when you don't pay in pesos.
this is not the excited states or any other country. mexico actually has it's own currency.
when you use an atm in mexico to draw from your us bank account-it will pay you in pesos-gee,i wonder why.
now i must leave for the market to get some fresh meat, fruit and veggies.
i'm sure if i ask, as per your suggestion, they will gladly accept yanqui bucks. ;-)